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Since the cash flows go to perpetuity, we can calculate the present value using the equation for the PV of a perpetuity. The NPV is:
Since the cash flows go to perpetuity, we can calculate the present value using the equation for the PV of a perpetuity. The NPV is:
NPV = $-66,500,000 + ($7,900,000/0.1139)
NPV = ?
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
